Amylin jumps after diabetes drug approved

Shares of Amylin received a shot in the arm after its Bydureon diabetes drug won approval from U.S. regulators late Friday. The FDA approved Bydureon, which is injected once a week, to treat adults with Type 2 diabetes.

Currently, over 300 million people suffer from Type 2 diabetes worldwide, including 26 million in the U.S., and some analysts have speculated that Bydureon can mean as much as $1 billion in sales for Amylin. However it still faces the difficult task of receiving the support of doctors in a competitive market.

Currently, Novo’s Victoza injectable diabetes medicine has been in the market for two years while GlaxoSmithKline (GSK) and Sanofi (SNY) also have offerings in the market. While Victoza tested better than Bydureon, some believe that Bydureon may have the upper hand due to its more convenient dosing.

The drug’s annual cost will be roughly $4,200, in line with its rivals and it is expected to be in pharmacies by the end of February.